Office

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Glasgow City Core is the largest office sub-market outside of London. The city provides high quality, competitively-priced workspaces. Office rental costs remain competitive in comparison to many UK cities with property costs typically 71% lower than London (West End), 4.5% lower than Manchester and 8.5% lower than Edinburgh (Cushman & Wakefield UK Office Market Snapshot Q4 2018).

City core office market averages 2018

12 Month sales volumePrime yieldPrime rent (sq ft)Vacancy rate
£455.7m (€523.16m)5.25%£30.00 (€34.44)9.1%

(CoStar – January 2019)

City centre prime office rents & yields – Q4 2018

LocationRent per sq ft
(£)
Rent per sq m
(€)
Yield
Glasgow32.00371.005.00
London (West End)110.001,362.003.75
Edinburgh35.00433.004.50
Manchester33.50415.004.75
Birmingham34.00421.004.75
Bristol35.00427.004.75
Leeds30.00371.005.00
Cardiff25.00309.005.50
Newcastle24.25297.005.50
Reading38.50477.005.00

(Cushman & Wakefield, UK Office Market Snapshot, 4th Quarter, 2018)  

Occupier market

2018 was a record breaking year for Glasgow with over 1.4m sq ft (130,064 sq m) of city centre space leased. A number of significant pre-lets bolstered the market including Barclays’ 470,000 sq ft (43,664 sq m) purchase at Buchanan Wharf, a major pre-let of 187,000 sq ft (17,373 sq m) to HMRC at Atlantic Square and Clydesdale Bank’s 110,995 sq ft (10,312 sq m) pre-let at 177 Bothwell Street.

Grade A office pipeline

Work is underway on a number of developments across the city to deliver nearly 2 million sq ft of Grade A office space – with over 1 million sq ft coming online in 2020/21.

Pipeline Projects

AddressSize (sq ft)Size (sq m)Developer
Buchanan Wharf470,00043,664Drum Property Group
177 Bothwell Street313,00029,079HFD Property Group
Atlantic Square (Buildings 1 & 2)260,00024,155BAM Properties, TCP Developments, LGIM Real Assets
One Central (Argyle Street)280,00026,012Osborne + Co
33 Cadogan Street (The Grid)275,00025,548M&G Real Estate
67 Sauchiehall Street130,00012,077Formal Investments Ltd
64 Waterloo Street (The Still)100,0009,290Whiteburn Projects Ltd
20 Cadogan Street (Cadworks)95,5008,872 FORE Partnership

 

Alongside the Grade A office pipeline, Glasgow has seen a flurry of high quality refurbishments completed, including:

  • The Garment Factory at Montrose Street (53,800 sq ft)
  • 1 & 3 Atlantic Quay (106,200 sq ft)
  • 123 St Vincent Street (60,700 sq ft)
  • 310 St Vincent Street (78,941 sq ft)
  • 58 Waterloo Street (31,068 sq ft)
  • 191 West George Street (88,300 sq ft)

Investment market 

Investment activity in Glasgow has been very strong in 2018 with 49 sales transactions totaling £455.7 million, a year on year increase of 28%, with investors availing an impressive average yield of 5.7% (CoStar – Jan 2019).

In recent years, Glasgow has seen a significant increase in interest from investors in Asia, New Zealand, the Middle East, Europe and America. Glasgow’s appeal for international investors is due to a number of factors including reduced competition from UK Institutions, value for money, a weakened pound, and strong local market fundamentals.


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